2020 has been a year that no one has ever expected. It started out okay but it suddenly took a turn in March. Countries around the world were forced to close down and people were restricted from going out into public spaces. All of these are because of the Coronavirus or COVID19 pandemic.
Not only did this crisis have took millions of lives but the global economy has been taking its toll. Since then, several businesses have closed down and hundreds of millions of the working class were let go from their jobs — making the global unemployment rate skyrocket to an all-time high. In Canada, the unemployment rate last May soared up to 13.7%, which is the highest record in about four decades.
And now, after almost 9 months since this started, the end of this crisis is still nowhere to be seen. Which forced those who have been stuck at home with no stable source of income to apply for loans – hoping this will help them get through the year as everything slowly gets better. Canada loans no credit check have been the go-to of borrowers who weren’t able to maintain a good credit score. This is actually a great option especially for those who are in need of cash but does not have the credit score to get approved for traditional loans.
If you have been thinking about applying for no credit check loans in Canada, here is what you should know first.
No Credit Check Loans Canada
With millions of Canadians losing their jobs, no credit check loans have been a good option to temporarily solve their financial crisis. The good thing about these types of loans is that most of them do not require a good credit score which means that some lenders will not even look into your credit history. This is convenient for those who are just starting with their careers and have not established a good credit score and those who have kind of end up with a bad one due to previous financial conflicts.
Most credit check loans are pretty easy to apply for and have a higher approval rate compared to traditional loans. Now that lending companies have gone online, your application can be submitted and done on their website. There are online lending services that accept loan applications and submit them to multiple direct lenders. This increases the applicant’s chances of getting approved even higher.
Types of No Credit Check Loans in Canada
Instalment loans are best for people who are planning to apply for large loans but do not have enough credit score. This type of loan also allows them to repay through instalments — divided into multiple repayments in a period. If you think you cannot pay for a loan in just one repayment, then this type of no credit check loan is for you.
For payday loans, the major qualification would be that you must be employed or have a stable source of income. This type of loan is good for fast cash and if you are only planning to borrow a couple of hundred dollars to a thousand. It depends on the lending company but common payday loans allowed are between $100 to $1500. Repayments must be done on or before you receive your next salary, which is usually after 14 days you got approved of the loan — again, depends on the lender’s policies. Payday loans can now be electronically transferred to your checking account which makes the process faster and more convenient.
Other no credit check loans
Personal loans, car title loans, home equity loans, credit union loans, etc.
Determining which type of no credit check loans you should apply for depends on the amount of money you need as well as which one fits most your current financial situation. Your lender must be able to advise on which one you should apply for, so make sure you speak with them first and ask the right questions.
Requirements for No Credit Check Loans
Requirements for no credit check loans in Canada may differ depending on your province’s policies as well as the lending company’s policies. However, basic documents that you need to have are those that can prove the following:
- You are of legal age; at least 18 years
- You have a stable source of income
- You own a checking account
- You are a Canadian citizen (may not be applicable to some lending companies)
To prove that you meet the minimum age requirements, you need to present an identification card or birth certificate. Proof of employment or certificate of income is also a must, especially for payday loans. You also need to present your checking account as well as contact details.
How to apply during the COVID19 pandemic? The application process for no credit check loans in Canada is more convenient than ever, especially during this pandemic. Lending companies accept application online through their websites. You can sit on your couch, turn on your device, and what is left for you to do is click the ‘Secure Application’ button.
The first thing that you should do is to fill out the online application form. Make sure that you enter the correct information as inaccuracy may negatively affect the result. The time of day that you will be starting this application is also important — the earlier, the faster you can receive the results and finish the process.
Once you have submitted your form, a representative may contact you regarding the information you have given them for verification. After a couple of hours, the results of your loan application can be released. Keep in mind that these all depends on how you competently provided the correct documents and information. Mistakes along the way can lengthen the process.
When results are released and a lender have deemed you eligible of a no credit check loan, the direct lender will give you the arrangements on how you will be receiving the money.
Yes, desperate times call for desperate measures — and 2020 is definitely one of those. However, it is important to first consider your options. Although no credit check loans are enticing, not to mention they have the easiest application process, looking into better lending options is still advisable. It is when these short-term loans are really your best and the only choice, do you really need to finally consider it. Interest rates and fees on no credit check loans are pretty up there and finding a reputable lending company can be hard but with the right knowledge and strategies, your loan application can go smoothly and successfully.